How did the Robber Barons of the Gilded Age amass their wealth?

 Oscar Rawson

Mr. Roddy

IHSS

4/12/22

How did the robber barons of the gilded age amass their wealth? IHSS Gilded Age Blog


The rich of the gilded age obtained their wealth through methods of exterminating all competition. They bought up the companies owned by the competitors in their industries until their company and its subsidiaries were the only ones left standing in the industry. These men sought to eliminate the competition by buying shares of their competitors, slowly gaining a larger and larger say in their businesses in order to serve their own self-interest. The most famous example is that of Vanderbilt and the railroad war. Vanderbilt sought to attain control of the Erie Railroad Company, and competed with financiers Jay Gould and Jim Fisk to have the largest share of the company. He conspired with the man in charge of the company at the time, Daniel Drew. Drew was eventually forced out of power within the company as Gould and Fisk gained control. This event triggered the end of the war, and Vanderbilt lost control of the railroad to Gould and Fisk through their sheer buying power. This is just one example of how robber barons like Vanderbilt, Gould, and Fisk all obtained power. Once they had enough money to finance a takeover like this one, they could continue to profit from their original companies and amass greater and greater influence and control over the industry. Rockefeller’s Standard Oil became one of the largest companies to ever exist and was dissolved by the Ohio Supreme Court for being a monopoly. Rockefeller acquired his wealth in a similar manner by buying out his competitors and controlling about 90% of the booming oil industry. However, he proceeded to reform the company in a different place under a different name. This new company, Standard Oil of New Jersey, was eventually separated into 30 separate companies by the U.S Supreme Court because it violated antitrust laws. People like Rockefeller, Vanderbilt, and many more men were the most powerful people at the time. They were so influential in politics that many thought of them as being above senators. Lobbyists for their corporations had so much power in the government that one lobbyist for Pennsylvania Railroad Company was referred to as the “51st Senator”. The events of this time draw a parallel to today in that it was a period of enormous wealth inequality. Corporations today are nearing similar levels of influence in the government. Many are becoming closer and closer to monopolies. The richest people in the country now have unimaginable power. They have similar influences on government, and lobbyists are incredibly influential. Are we living in a second gilded age? I think such a thing is fair to say.

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